FINANCIAL AID Financing Your Education Julie Aldama Director of Financial Aid Whittier College.

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Financing Your Education

Julie AldamaDirector of Financial Aid

Whittier College

Agenda:Questions to Answer

• What is financial aid?• How does my student apply for financial aid?

• In-depth look at the FAFSA• Is there anything special I should know?• What happens after my student applies for financial

aid?• Is there any thing else I should know?

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Disclosure

• Things are changing rapidly – information is accurate as of today, but may change on January 1

• Unable to answer questions about taxes or tax returns

• Unable to provide financial planning advice

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What is Financial Aid?

Financial Aid Overview

What is Financial Aid?

• Financial aid is any form of financial assistance for students attending an institution of post-secondary education.

• Grants• Scholarships• Work Study• Student Loans• Parent Loans

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What is Financial Aid?

• Once you are accepted to a college or university and have applied for financial aid, a financial aid administrator will determine your financial aid award package.

• Each college or university will have an awarding philosophy or policy that, when combined with information from the application materials, will determine what financial aid you are eligible to receive.

• Don’t expect the exact same package from every school – many factors impact the package including the overall cost of the school.

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Sources of Financial Aid

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FederalGovernment

StateGovernment

College orUniversity

PrivateFoundations

Types of Financial Aid

• Awarded to a student based wholly or in part on a student’s financial need as demonstrated on their application materials

• Pell grant, SEOG, Subsidized Direct Loan

• Awarded to a student based wholly or in part on a student’s talents, academic or otherwise.

• Honors grants, athletic grants, theatre scholarships

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Need-Based Financial Aid Merit-Based Financial Aid

Types of Financial Aid

• Grants• Scholarships• Pell Grant• SEOG• Cal Grant A & B

• Stafford Loans• PLUS Loans• Work Study• Alternative Loans

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Gift Assistance Self-Help

Pell Grant

• Federal grant• Award: up to $5730 (subject to change for 2015)• Reserved for the highest need students• Federal government defines parameters for

awarding

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FSEOG

• Federal grant• Range: $100 - $4,000• Funds limited at each institution• Award may vary at each institution• Institution defines parameters for awarding• Students with exceptional financial need• Must be receiving a Pell grant

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Cal Grants

• State grant• Award (14/15)

• Private: $9,084 (A) or $1,648 (B)

• Cal State: $5,472 (A) or $1,473 (B)

• UC: $12,192 (A) or $1,473 (B)• Based on grades

• 3.00 or better Cal Grant A• 2.00 or better Cal Grant B• Unweighted, 4.0 scale• Sophomore year through

summer after Junior year

• Demonstrated financial need

• Only one program A or B• CSAC will decide best

option for student• March 2 postmark for both

GPA Verification and FAFSA

• Potential cuts in this program based on budget.

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Cal Grant Income Ceilings

Family Size Cal Grant A Cal Grant BSix or More $100,800 $55,400Five $93,400 $51,300Four $87,200 $45,800Three $80,200 $41,200Two $78,300 $36,600

2015-2016 income levels presented – represents cap drop at all income levels

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Direct Loans

• Federal loan• Guaranteed• Subsidized and/or Unsubsidized• Fixed interest: 4.6% sub or 4.6% unsub• Max combined of $3,500 + $2,000

• Some students may qualify for more• Deferred while in school• 10 year loan

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Direct PLUS Loans

• Federal loan• For parents to benefit student• Credit-based• Fixed interest: 7.21%• Borrow up to the cost of education• If rejected, student may be able to borrow additional funds• Repayment begins after full disbursement while the student

is in school - some lenders may offer forbearance

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How Does My Student Apply for Financial Aid?

The Application Materials

Application Materials

• Cal Grant GPA Verification Form• Institutional Application(s)/ Documents• CSS/Financial Aid Profile• Free Application for Federal Student Aid (FAFSA)

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Cal Grant GPA Verification Form

• Administered by the California Student Aid Commission (CSAC)

• Most schools will complete this application electronically on behalf of the student

• March 2nd Deadline (Postmarked)

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Cal Grant GPA Verification Form

• Only one section for the student to complete; your counselor does the rest!

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Institutional Application

• Administered directly by the college or scholarship program• Multiple applications for different types of financial aid

• Deadlines, forms and types of questions will vary• Some colleges may not use these at all• Check with each college or scholarship program• Probably ask questions about:

• Assets, Business Value, Farm Value, Retirement Accounts

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CSS/Financial Aid Profile

• Administered by the College Board• Application for college-based financial aid and some private

scholarship programs• Profileonline.collegeboard.com• $25 application fee for first college + $16 for each additional

college or program• Limited number of fee waivers available awarded automatically

based on the information you submit• Questions on Profile may vary• May complete as early as October 1 of every year

• Deadlines will vary

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Non-Custodial Profile

• $25 fee• Collects information from non-custodial parent if

required by the college or program• Exceptions can be made only by the college or

program NOT the College Board

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The FAFSA

• Administered by the federal government• US Citizens and Eligible Non-Citizens may complete the FAFSA• Determines eligibility for federal financial aid

• No offer of financial aid – eligibility only• Financial information is prior year

• 2014 for 2015-16 academic year• Answer questions as asked – variations and special

circumstances handled by each school• Doesn’t matter what school you list first on FAFSA however for

Cal Grant it does. So put your California schools on first.

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The FAFSA Online

• www.FAFSA.gov• Applying online…

• Requires a PIN code (student & parent) in spring will change to user name and password

• Reduces chance of error• Quickens processing time• On Screen Help and Tips• Asks only questions that apply to the student based on other

answers

• Student Sections: BLUE• Parent Sections: LIGHT PURPLE

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Who Completes the FAFSA?

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The Student!But mom and/or dad should HELP.

Login Information

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Get Started

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Password

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Help and Resources

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Get Started

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College Selection

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…Or…

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Dependency Status

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Dependency Status

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Dependency Results

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Answering “I am unable to provide…” does NOT make the student independent and may limit the resources available to the student. Your Financial Aid Administrator may determine you are required to submit parental information.

Who is a Parent?

• Biological Parent(s)• Adoptive Parent(s)• Stepparent

• Regardless of prenuptial agreement• Regardless of adoption status

• “…even if you do not live with them.”

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Who is NOT a Parent?

• Foster parent(s)• Grandparent(s)• Legal guardians

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Unless they have legally adopted the student

Whose Information Do You Report?

If… Then report on the FAFSA…

Both parents are living & married to each other

Both parents financial information

Parent is widowed or single and not remarried

That parent’s financial information

Parents are divorced or separated

The parent you lived with more during the past 12 months; if equal the parent who provided the most financial support

Parent is remarried The parent and the parent’s spouse

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Financial Information Parent(s)

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Investments ALSO include qualified educational benefits or education savings accounts such as Coverdell savings accounts, 529 college savings plans and the refund value of 529 prepaid tuition plans.

Investments includeBut are not limited to…

• Real estate not including the home you live in

• Trust funds• UGMA and UTMA• Money market funds

mutual funds • Certificates of deposit• Stocks• Stock options• Bonds• Other securities

DO NOT include retirement accounts.

Sign and Submit

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Same question and requirements for parent. Parent needs also needs a PIN.

Sign and Submit

• Click on “View or Print…”• Opens .pdf• DO NOT

SEND TO SCHOOL UNLESS REQUESTED

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After All That, The FAFSA Didn’t Ask About…

• Consumer debt/credit card payments• Mortgage payments• Private school tuition• Parent(s) attending college• Special circumstances

• Changes in income due to lay offs, reduced hours or furloughs

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Appeals & Special Circumstances

• Anything that the FAFSA does not ask about you may share directly with the college(s) you are applying to.• Letter• Appeal or Special Circumstance Form

• Colleges may or may not consider the additional information• May receive different answers from different colleges –

no obligation for one college to match another

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Is There Anything Special I Should Know?

Tips and Tricks (that aren’t so tricky)

Maximize Your Eligibility

• Student income & assets are treated more harshly than parent income & assets

• The FAFSA is a time-specific document• “As of today…”; as of the day you sign the document

• Distributions from retirement funds are generally considered income

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Maximizing Your Eligibility

Always report your information honestly and accurately!

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Remember…

• Know the deadlines• First day to complete the FAFSA: January 1

• Apply online to reduce chance of error• File taxes early

• If you cannot, give an exact estimate• You must apply for financial aid every year• Keep your financial information organized and accessible

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Don’t Get Scammed

• The FAFSA is a daunting but EASY document to complete

• You don’t need to pay money to get money• Financial aid offices, CSAC and the Department of

Education are available to assist you in completing forms free of charge

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What Happens After My Student Applies for Financial Aid?

Life After The FAFSA

It’s Magic – The FAFSA Turns into a SAR

• Student Aid Report (SAR) is generated with an Expected Family Contribution (EFC)• Valid SAR or Invalid SAR?• Selected for Verification?

• Awards are made by the institution NOT the federal government• Awards will NOT be indicated on the SAR

• Check the information on your SAR carefully and make any corrections• If you estimated you or your parent(s) income information change

it when taxes are finalized

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What’s an EFC?

• Expected Family Contribution• Calculation of what the family can reasonably be

able to afford to pay for college• Acts as an index number for determining eligibility

for some grants and scholarships• EFC remains the same at every school• EFC is NOT a guarantee that you will only pay that

amount of money for college

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Life After the FAFSA

• Review your financial aid award(s)• Determine the appropriate procedure for accepting or

declining the awards• Complete any additional paperwork• Compare and contrast offers to better understand what you

will be responsible for out of pocket• Notify all schools of your enrollment decision (Admission

Office & Financial Aid Office)

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If It’s Still Not Enough…

• Private scholarships• Online directories• Unions or organizations• School bulletins

• Payment plan through the college• Typically short-term

• Perkins Loan or Institutional Loan• Alternative loan through private lender

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Useful Websites

• www.fafsa.gov – Only official link for the FAFSA• www.csac.ca.gov – Official website for the

California Student Aid Commission• www.finaid.org – Smart Student Guide to Financial

Aid• www.fastaid.com – Free scholarship database• www.fastweb.com – Free scholarship database• Pin.ed.gov – apply for a pin number

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Julie AldamaDirector of Financial Aid

[email protected](562) 907-4285